Imagine a business in which other people hand you their moneyto look after and pay you handsomely for doing so. Even better,your fees go up every year, even if you are hopeless at the job. Itsounds perfect.

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The Economist

March 1, 2008, Special Report on Asset Management

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Meeting the Success Challenge In The InvestmentManagement Industry

•Investors Will Pay More Attention to Firm’s Business model

•Questions of Capacity will Come up More Frequently

•Capacity Serious Investors Will Employ Performance Based Fees

•This Will Lead More Managers to Focus on Maximizing Alpha as Opposedto Maximizing Assets

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Where Is Active Management Going?

•Canadian Equity Plus

•130/30

•Small Cap

•Market Neutral/Portable Alpha

Why?

The Fundamental Law of Active Investment ManagementPlus The Power Of Diversification

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The Power of Diversification

012345678-0.99-0.80-0.61-0.42-0.23-0.040.150.340.530.720.91The Greater the Negative Correlation Between 2Investments, the Greater the Contribution toReducing Risk.